In the event of litigation relating to a Degree Wellness Mark, what am I obligated to do?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
You further agree to refrain from any business or advertising practice that may be harmful to the business of Degree Wellness, the Franchise, and/or the goodwill associated with the Marks and other Degree Wellness franchises.
- d.
You must notify us in writing within 5 days of (1) the commencement of any action, suit, or proceeding, and/or of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental unit, that may adversely affect your and/or the Franchise's operation, financial condition, or reputation, including, without limitation, any and all claims of malpractice brought against you or any professional affiliated with you, regardless of the nature of the claim, anticipated outcome or remedies sought; and/or (2) your receipt or knowledge any notice of violation of any law, ordinance, or regulation relating to health or safety.
- e.
Without limiting any other provisions in this Agreement, you acknowledge and agree that you have sole responsibility for operating your Franchise in compliance with all applicable laws, rules, and regulations relating to the practice of health care, including without limitation: licensure, marketing and
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if any action, suit, or proceeding is commenced, or any order, writ, injunction, award, or decree is issued by any court, agency, or other governmental unit, that may adversely affect your and/or the Franchise's operation, financial condition, or reputation, you must notify Degree Wellness in writing within 5 days. This includes, without limitation, any and all claims of malpractice brought against you or any professional affiliated with you, regardless of the nature of the claim, anticipated outcome or remedies sought; and/or (2) your receipt or knowledge any notice of violation of any law, ordinance, or regulation relating to health or safety.
This notification requirement ensures that Degree Wellness is promptly informed of any legal or regulatory issues that could impact the franchise or the brand's reputation. By requiring notification within 5 days, Degree Wellness aims to stay ahead of potential problems and take appropriate action to protect its interests and the interests of other franchisees. This is a common practice in franchising, as franchisors need to maintain brand standards and address legal issues that could affect the entire system.
The franchisee is responsible for operating their Degree Wellness franchise in compliance with all applicable laws, rules, and regulations relating to the practice of health care, including without limitation: licensure, marketing and advertising, scope of practice, patient care, and billing. This underscores the importance of franchisees staying informed about and adhering to all relevant legal and regulatory requirements in their area. Failure to comply with these regulations could lead to legal action and potential damage to the Degree Wellness brand.
Overall, this provision highlights the importance of transparency and communication between the franchisee and Degree Wellness. By promptly reporting any legal or regulatory issues, franchisees can help Degree Wellness address potential problems and protect the brand's reputation. This also emphasizes the franchisee's responsibility to operate their business in compliance with all applicable laws and regulations.